RF Industries,Ltd。(RFIL) 首席执行官 Rob Dawson 于 2019年 第二季度业绩 - 收益电话会议记录

RF Industries, Ltd. (NASDAQ:RFIL) Q2 2019 Earnings Conference Call June 12, 2019 4:30 PM ET

RF Industries,Ltd。(纳斯达克股票代码:[RFIL])2019年第二季度收益电话会议2019年6月12日美国东部时间下午4:30

公司参与者

Todd Kehrli - President, MKR Group
Rob Dawson - President and CEO
Mark Turfler - CFO

  • Todd Kehrli - MKR集团总裁
  • Rob Dawson - 总裁兼首席执行官
  • Mark Turfler - 首席财务官

电话会议参与者

Aman Gulani - B. Riley FBR
Aaron Martin - AIGH Investment Partners

  • Aman Gulani - B. Riley FBR
  • Aaron Martin - AIGH投资合伙人

会议主持员

Welcome to the RF Industries' Second Quarter Fiscal 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded today, Wednesday, June 12, 2019.
At this time, I would like to turn the conference over to Mr. Todd Kehrli of MKR Group. Please go ahead, sir.

欢迎来到RF Industries的2019财年第二季度财务业绩电话会议。 此时,所有参与者都处于只听模式。 稍后,我们将进行问答环节。 [运营商说明]提醒一下,今天,即2019年6月12日星期三,正在记录此电话。

此时,我想将会议转交给MKR集团的Todd Kehrli先生。 请继续,先生。

Todd Kehrli

Thank you, operator. Good afternoon and welcome to RF Industries' second quarter fiscal 2019 financial results conference call. With me on today's call are RF Industries' President and CEO, Rob Dawson; and Chief Financial Officer, Mark Turfler.
Before I turn the call over to Rob and Mark, I'd like to cover a few quick items. This afternoon, RF Industries issued a press release announcing its second quarter fiscal 2019 financial results. That release is available on the company's website at rfindustries.com. This call is being broadcast live over the Internet for all interested parties and the webcast will be archived on the Investor Relations page of the company's website.
I'd like to remind everyone that on today's call, management will make forward-looking statements that involve risks and uncertainties. Please note that except for historical statements, statements on this call today may constitute forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. When used, the words anticipates, beliefs, expects, intend, future and other similar expressions, identify forward-looking statements.
These forward-looking statements reflect management's current views with respect to future events and financial performance and are subject to risks and uncertainties and actual results may differ materially from the outcomes contained in any forward-looking statements.
Factors that could cause these forward-looking statements to differ from actual results include delays in development, marketing or sales of products and other risks and uncertainties discussed in the company’s periodic reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission. RF Industries undertakes no obligation to update or revise any forward-looking statements.
I’ll now turn the conference call over to Rob Dawson, President and Chief Executive Officer. Go ahead, Rob?

谢谢运营商。下午好,欢迎参加RF Industries 2019财年第二季度财务业绩电话会议。在今天的电话会议上,我是RF Industries的总裁兼首席执行官,Rob Dawson

Rob Dawson

Thanks, Todd. Good afternoon, everyone and welcome to our second quarter fiscal 2019 earnings call. We're pleased to report a strong second quarter with solid sequential growth in both our revenue and net income over the first quarter. We grew net sales 28% sequentially in Q2, reflecting quarter-over-quarter growth in both of our reporting segments.
Net income was up 66% sequentially, reflecting our continued progress with improving efficiencies and controlling G&A and highlighting our ability to be profitable at varying levels of revenue. Our backlog at the end of Q2 was just above $10 million, which is our third straight quarter with backlog over $10 million.
Now let's take a moment and talk about it one final time. In Q2, we were up against a very tough comparison to last year's second quarter, which was our largest quarter ever in the company history by far, with $20 million in sales. Due to last year included several large orders from one customer that we don't expect to repeat at that same level. I said it at the time and again on every quarterly call since. We're not yet to the point of consistently delivering $20 million quarters and that we shouldn't expect that size quarter again in the short-term.
I've also said all along that when given these kinds of opportunities, it's important to address head on the possibility that it won't repeat right away, but you have to leverage the win as a bridge to transform the company into what's next.
In hindsight, it's kind of ironic that somehow our huge Q2 last year might not have been recognized for what it has allowed us to leverage. It gave us a solid new customer that we've turned into a long-term relationship with meaningful orders for similar products continuing every quarter since, including the current quarter. It proved to us that we can execute at a very high level when faced with some tough timelines.
We were asked to deliver at an incredible volume, and we did. It also reiterated that we have products and capabilities that can flourish in a very competitive marketplace. And it added significant cash to the balance sheet, which we are focused on responsibly redeploying to grow and transform the company.
Finally, while our step change in revenue last year included this huge chunk of sales in Q2, we continued producing larger quarterly results over the last year compared to historicals, positioning us for another strong year this year.
Now back to the current results, the sequential increase in our top line in the second quarter was driven by both organic growth in the low-double digits, as well as inorganic growth from our recent acquisition of C Enterprises, which contributed about six weeks of results in the quarter. The C Enterprises team has been executing well, and I'm pleased to note that since the acquisition, we've already seen a significant increase in the volumes they're producing compared to historical levels.
During the quarter, we saw continued to spend from our Tier 1 wireless customer, while also seeing continued growth in our OEM segments and increased business from our distribution channels and other key applications like traditional macro sites, public safety, and distributed antenna systems.

谢谢,托德。大家下午好,欢迎来到我们2019年第二季度的财报电话会议。我们很高兴地报告第二季度强劲,第一季度我们的收入和净收入均有稳定的连续增长。第二季度我们的净销售额环比增长28%,反映了我们两个报告板块的季度环比增长。

净收入比上一季度增长66%,反映了我们在提高效率和控制G&A方面的持续进步,并强调了我们在不同收入水平下盈利的能力。我们在第二季度末的积压仅略高于1000万美元,这是我们连续第三个季度积压超过1000万美元。

现在让我们花点时间谈谈最后一次。在第二季度,我们与去年的第二季度进行了非常艰难的比较,去年第二季度是公司历史上迄今为止最大的一个季度,销售额为2000万美元。由于去年包括一个客户的几个大订单,我们不希望在同一水平上重复。我从那以后的每个季度电话都是这么说的。我们还没有达到持续提供2000万美元的季度,而且我们不应该在短期内再次预期该季度。

我一直都说过,在获得这些机会时,重要的是要解决它不会马上重复的可能性,但你必须利用胜利作为桥梁将公司转变为下一步。

事后看来,具有讽刺意味的是,去年我们巨大的第二季度可能不会因为它让我们能够利用它而得到认可。它为我们提供了一个坚实的新客户,我们已经与包括本季度在内的每季度持续的类似产品订单建立了长期合作关系。它向我们证明,当面对一些艰难的时间表时,我们可以在非常高的水平上执行。

我们被要求以惊人的数量交付,我们做到了。它还重申,我们拥有的产品和能力可以在竞争激烈的市场中蓬勃发展。它为资产负债表增加了大量现金,我们专注于负责任地重新部署以发展和改造公司。

最后,虽然我们去年的收入增长步骤包括第二季度的大部分销售额,但与历史相比,我们继续在去年产生更大的季度业绩,这使我们今年再次走强。

现在回到目前的结果,第二季度我们的收入增长的顺序增长是由于低位数的有机增长以及我们最近收购C Enterprises的无机增长所致,这些增长贡献了大约6周的时间。结果在本季度。 C Enterprises团队一直表现良好,我很高兴地注意到,自收购以来,与历史水平相比,我们已经看到他们的产量大幅增加。

在本季度,我们看到继续从我们的一级无线客户那里花费,同时我们的OEM部门也在持续增长,并通过我们的分销渠道和传统宏观站点,公共安全和分布式天线系统等其他关键应用增加业务。

A good measure of the positive progress we're making with leveraging our distribution channels is the significant growth we're seeing in our RF Cable and Connector business, which grew 22% year-over-year in Q2. This is the second straight quarter of double digit growth year-over-year for this business segment, highlighting the benefits we're starting to see from our focus on driving more business through distribution.
While wireless continues to be our biggest growth opportunity, we're also seeing upside in OEM market segments. These segments are primarily the industrial markets, such as manufacturing, defense, aerospace, oil and gas, transportation, mining, agriculture and others. During Q2, specifically, we benefited from business in rail and public transportation applications, as well as with our traditional industrial manufacturing customers.
As we've noted before, our growth strategy focuses on both generating organic growth, which we did this quarter, as well as opportunities for inorganic growth. Our acquisition of C Enterprises during the second quarter gives us a solid fiber optic offering that’s scalable and complimentary to the rest of our business. Additionally, we believe we can leverage their manufacturing capabilities to strengthen our small cell product offering to the wireless market, providing an opportunity for future revenue growth as the 5G rollout and the related densification investment starts to gain steam.
While we've not yet seen this positive impact to small cell spend with C Enterprises, we are seeing significant increases in their historical volumes in core telecom and fiber and data cable offerings. We're also seeing that as we acquire companies, we can provide a reinvigorated approach to growth when they're aligned around a bigger goal.
We're very happy with the addition of C Enterprises, and how well they’ve fit with our growth oriented company culture. As importantly, we feel that this acquisition was a great use of capital to grow the business. We feel that we negotiated a positive deal for everyone involved and we're pleased that we're already showing accretive results.
We remain committed to both accelerating our growth organically and by adding growth through acquisitions. As we've mentioned on past calls, on the M&A front, we were committed to doing at least one acquisition this year, and we did. While we continue to pay a nice dividend, we believe that the bigger opportunity for us is to invest in our growth.
Our balance sheet remains strong and provides us with significant resources to pursue additional acquisitions that makes sense. We still see some interesting candidates in the marketplace, and there's still the possibility of additional acquisitions this year.
As far as acquisition targets, had a handful of conversations that are always down the path. Generally, I'm interested in companies in the $10 million to $20 million revenue range, with similar products and channels to ours to give us access to a new product set and new customers or segments.

衡量我们利用分销渠道取得的积极进展的一个很好的衡量指标是我们在射频电缆和连接器业务中看到的显着增长,其第二季度同比增长22%。这是该业务部门连续第二个季度实现两位数的同比增长,突出了我们开始关注通过分销推动更多业务的好处。

虽然无线仍然是我们最大的增长机会,但我们也看到了OEM市场领域的优势。这些细分市场主要是工业市场,如制造业,国防,航空航天,石油和天然气,运输,采矿,农业等。特别是在第二季度,我们从铁路和公​​共交通应用业务以及传统工业制造业客户中获益。

正如我们之前所说,我们的增长战略侧重于产生本季度我们所做的有机增长,以及无机增长的机会。我们在第二季度收购了C Enterprises,为我们提供了可靠的光纤产品,可以扩展并与我们的其他业务互补。此外,我们相信我们可以利用其制造能力来加强我们向无线市场提供的小型电池产品,为5G部署和相关的致密化投资开始获得动力,为未来的收入增长提供机会。

虽然我们还没有看到对C Enterprises的小型蜂窝消费产生这种积极影响,但我们看到核心电信和光纤及数据线产品的历史数量显着增加。我们也看到,当我们收购公司时,我们可以在实现更大目标的同时提供重新振兴的增长方法。

我们对C Enterprises的加入以及它们与我们以增长为导向的公司文化的契合度非常满意。同样重要的是,我们认为此次收购是利用资本来发展业务。我们认为我们为所涉及的每个人谈判达成了积极的协议,我们很高兴我们已经展示了积极的成果。

我们始终致力于通过收购增加有机增长和增长。正如我们在过去的电话会议中所提到的,在并购方面,我们承诺今年至少进行一次收购,我们做到了。虽然我们继续支付不错的红利,但我们相信对我们来说更大的机会是投资于我们的增长。

我们的资产负债表依然强劲,为我们提供了大量资源,可以进行有意义的额外收购。我们仍然看到市场上有一些有趣的候选人,今年还有可能进行额外的收购。

就收购目标而言,有一些对话总是在路上。一般来说,我对1000万到2000万美元收入范围内的公司感兴趣,我们拥有类似的产品和渠道,可以让我们获得新产品和新客户或细分市场。

As I mentioned earlier, one area of focus is expanding our overall offer of the small cell bill of materials so that we can capitalize on the upcoming 5G densification opportunity, but we're also looking to potentially own other passive components that we can sell through our growing distribution channel. We're very focused on culture when we review potential acquisitions, as we can benefit from an easier integration when light minds are involved and accelerate the process of moving the business forward.
Finally, I'm interested in talent to elevate our team and help drive our growth. As I've said, in the past, when it comes to M&A, I'm focused on getting it right and not just doing it quickly. One bad acquisition can set back a lot of the hard work that we've been doing.
Continuing on the topic of the evolution of the company, we're very focused on a positive growth culture with a sales mindset. We're at a stage where it makes sense for us to add and upgrade talent and key roles in the company. And we're working hard that as we find savings through synergies and redundancies, we redeploy a portion of that capital to invest in the right talent to help us grow. We have some great things happening, and we want to keep the momentum going.
We're currently reviewing our overall sales structure and expect to launch a new sales organization to capitalize on our one company approach and offer to the market and to further evolve our approach of doing business the way our customers do business. We also have some best practice work to do on our operations and facilities, and think that over the next several quarters, we can make even more progress towards operating better as one company.
Related to our evolution, as you saw in our press release yesterday, we have added Sherry Cefali to our Board of Directors. Sherry has over 25 years of experience rendering fairness and solvency opinions and determining valuations of companies and securities. For extensive experience in mergers and acquisitions and company valuation work will be extremely helpful to us as we continue to pursue acquisitions as part of our growth strategy. I'm very pleased to have Sherry join our board, and look forward to her contributions as we continue executing on our plan for long-term growth.
On a related topic, as you'll see in our filing, William Reynolds, one of RF Industries long standing directors informed the board that he will retire from the Board of Directors immediately before this year's annual meeting of stockholders, and he does not intend to stand for reelection this year. I personally want to thank Bill for all of his contributions to the company over the years, and we all wish him well on his retirement.
Returning to the results. While we're still in the early phase of a multi-year transformation of our company, we're pleased with the steady progress that we're making. At the halfway point of this fiscal year, we've generated over $24 million in net sales, compared to $28 million, through the first six months of last year, which included that huge $20 million Q2. I'm very pleased with where we are so far for the year and we're getting better at delivering consistent and more predictable results.

正如我之前提到的,一个重点领域是扩大我们对小型电池材料清单的整体报价,以便我们可以利用即将到来的5G密集化机会,但我们也希望拥有可以通过其他方式销售的其他无源元件。我们不断增长的分销渠当我们审查潜在的收购时,我们非常关注文化,因为当涉及到轻松的思维并加速推动业务发展的过程时,我们可以从更容易的整合中受益。

最后,我对提升我们的团队并帮助推动我们的发展的人才感兴趣。正如我所说,过去,在并购方面,我专注于做到正确,而不仅仅是快速做到。一次糟糕的收购可能会挫败我们一直在做的许多艰苦工作。

继续讨论公司发展的主题,我们非常关注具有销售思维的积极增长文化。我们正处于一个有意义的阶段,我们可以在公司中添加和升级人才和关键角色。我们正努力工作,当我们通过协同效应和裁员找到储蓄时,我们会重新部署一部分资金来投资合适的人才来帮助我们成长。我们发生了一些很棒的事情,我们希望保持这种势头。

我们目前正在审查我们的整体销售结构,并期望启动一个新的销售组织,以利用我们的公司方法并向市场提供产品,并以客户开展业务的方式进一步发展我们的业务方式。我们还有一些关于我们的运营和设施的最佳实践工作,并且认为在接下来的几个季度中,我们可以在一家公司更好地运营方面取得更大进展。

与我们的发展相关,正如您在昨天的新闻稿中所看到的,我们已将Sherry Cefali添加到我们的董事会。 Sherry在提供公平和偿付能力意见以及确定公司和证券的估值方面拥有超过25年的经验。对于我们在合并和收购方面的丰富经验以及公司估值工作对我们非常有帮助,因为我们继续将收购作为我们发展战略的一部分。我很高兴让雪利酒加入我们的董事会,并期待她的贡献,因为我们继续执行我们的长期增长计划。

关于相关主题,正如您在我们的文件中看到的那样,RF Industries长期董事之一William Reynolds告知董事会,他将在今年的股东年会之前立即退出董事会,他并不打算今年代表连任。我个人想要感谢Bill多年来对公司所做的所有贡献,我们都希望他退休后能够做得很好。

回到结果。虽然我们仍处于公司多年转型的早期阶段,但我们对我们正在取得的稳步进展感到满意。在本财政年度的中途,我们的净销售额超过2400万美元,而去年前六个月则为2800万美元,其中包括2000万美元的第二季度。我对今年到目前为止所处的位置感到非常满意,并且我们在提供一致且更可预测的结果方面做得更好。

We still have lots of hard work ahead of us, but to be only a few million dollars in sales behind last year's breakthrough results at this point is a positive position to be in. While our Tier-1 wireless carrier customer continues to spend as expected is at a lower pace so far compared to last year.
It's important to note that we do lots of other business in the wireless market through our distributors with contractors, neutral hosts, two way radio customers and tower companies. We're building and deploying traditional cellular macro sites, distributed antenna systems, indoor and outdoor public safety networks and others. And we've also been performing well in growing our business in other markets. We see all of that is very positive.
So with the coming 5G rollout, and the related spend on densification, we feel we're well positioned for additional growth. It's important to remember that the 5G spend is as much about coverage everywhere as it is speed. And that coverage everywhere idea fits perfectly into our growing DAS product business and the coming small cell waves.
While the wireless market is our biggest growth potential in the short-term, we have major opportunities for growth beyond wireless as we continue to leverage and expand our distribution channels and improve our execution. As we look to Q3, we expect another strong quarter with both sequential and year-over-year revenue growth. And we expect to continue to be profitable on the bottom line.
With that, I'll now turn the call over to Mark for a detailed review and discussion of the financial results for the quarter. I think I wormed up the crown [ph]. Mark?

我们仍然有很多艰苦的工作要做,但是去年仅有几百万美元的销售额在这一点上的突破性成果是一个积极的位置。而我们的一级无线运营商客户继续按预期消费与去年相比,目前的速度较慢。

值得注意的是,我们通过与承包商,中立主机,双向无线电客户和塔式公司的分销商在无线市场中开展了许多其他业务。我们正在构建和部署传统的蜂窝宏站点,分布式天线系统,室内和室外公共安全网络等。我们在其他市场的业务发展也表现良好。我们看到所有这些都非常积极。

因此,随着即将到来的5G推出以及相关的致密化支出,我们认为我们已经做好了进一步增长的准备。重要的是要记住,5G花费与各地的覆盖范围一样多,因为速度也是如此。这种覆盖范围无处不在的理念非常适合我们不断发展的DAS产品业务和即将到来的小型细胞波。

虽然无线市场是我们短期内最大的增长潜力,但随着我们继续利用和扩展我们的分销渠道并改善我们的执行,我们拥有超越无线增长的重大机遇。在我们展望第三季度时,我们预计另一个强劲的季度会有连续增长和同比增长。我们预计盈利将继续保持盈利。

有了这个,我现在将电话转交给Mark,以便详细审查和讨论本季度的财务业绩。我想我已经忘了王冠[ph]。标记?

Mark Turfler

Thank you, Rob and good afternoon, everyone. Net sales in the second quarter 2019 were $13.6 million, a sequential increase of $3 million, or 28% compared to the preceding first quarter and $20.5 million in the second quarter a year ago. The sequential increase in sales was driven by both project work in the OEM and wireless carrier market and increases in traditional run rate business as well as six weeks of revenue contribution from C Enterprises, which we acquired during the quarter. The year-over-year decline in sales is the result of the largest series of orders in company history that we recorded in the second quarter a year ago.
Gross profit for the second quarter was $4.1 million, a sequential increase of $949,000 or 30%, compared to $3.1 million in a preceding first quarter, and a $7.6 million in the second quarter last year. Gross margins were 30%, comparable to the prior sequential quarter. Despite the tariffs and other macro pressures that are part of the current economic environment that most everyone's dealing with, we are pleased to continue to maintain solid margins.
Selling and general expenses were $2.4 million, compared to $2 million in the preceding first quarter and $3.1 million in the second quarter last year. Selling and general expenses as a percentage of sales for the second quarter were 18% compared to 19% of sales in the preceding first quarter, and 15% of sales in the second quarter of fiscal 2018.
Selling and general expenses included one-time cost of approximately $100,000 related to our acquisition of C Enterprises during the quarter, excluding their related costs, selling and general expenses as a percentage of sales in Q2 would have been 17%.
Net income for the second quarter with $1.1 million, or $0.11 per diluted share, a sequential increase of 66% from the preceding first quarter and compares to net income of $3.2 million, or 34% -- $0.34 per diluted share in the second quarter of fiscal 2018. The decline in net income for Q2 2019 as compared to Q2 2018 again was the result of the largest series of orders in the company's history in a year ago second quarter.
Turning to the first six months of fiscal 2019, net sales were $24.3 million, compared to $28.5 million, which included the huge Q2 results in the first six months of fiscal 2018. Gross profit for the first six months was $7.2 million, compared to $10.1 million, while gross margins were 30% of sales, compared to 36% of sales in the same period last year.
Selling and general expense were $4.4 million, or 18% of sales, compared to $4.8 million, or 17% of sales in the first six months last year. Income from continuing operations for the first six months of fiscal 2019 was $1.7 million, or $0.17 per diluted share, compared to income from continuing operations of $3.5 million, or $0.38 per diluted share in the same period last year.
Total cash and cash equivalents were nearly $14 million at the end of second quarter, essentially unchanged from the previous quarter. Our current backlog stands at $10 million, which is our third straight quarter with backlog of over $10 million.

谢谢Rob,大家下午好。 2019年第二季度的净销售额为1360万美元,比上一季度增长300万美元,增幅为28%,而去年第二季度为2050万美元。 OEM和无线运营商市场的项目工作以及传统运营率业务的增长以及我们在本季度收购的C Enterprises的六周收入贡献推动了销售的连续增长。销售额同比下降是我们在一年前第二季度录得的公司历史上最大的订单系列的结果。

第二季度的毛利润为410万美元,比去年第一季度的310万美元和去年第二季度的760万美元连续增长949,000美元或30%。毛利率为30%,与之前的连续季度相当。尽管关税和其他宏观压力是大多数人都在处理的当前经济环境的一部分,但我们很高兴继续保持稳健的利润率。

销售和一般费用为240万美元,而去年第一季度为200万美元,去年第二季度为310万美元。销售和一般费用占第二季度销售额的百分比为18%,而上一季度的销售额为19%,而2018财年第二季度的销售额为15%。

销售和一般费用包括与本季度收购C Enterprises相关的一次性成本约100,000美元,不包括相关成本,销售和一般费用占第二季度销售额的百分比为17%。

第二季度的净收入为110万美元,或每股摊薄收益0.11美元,比上一季度连续增长66%,而第二季度的净收入为320万美元,即每股摊薄收益的34% - 0.34美元。 2018年第二季度的净收入与2018年第二季度相比再次下降,这是该公司一年前第二季度历史上最大的订单系列的结果。

谈到2019财年的前六个月,净销售额为2430万美元,而2850万美元,其中包括2018财年前六个月的第二季度巨额业绩。前六个月的毛利润为720万美元,而去年同期为10.1美元。百万,而毛利率为销售额的30%,而去年同期的销售额为36%。

销售和一般费用为440万美元,占销售额的18%,而去年前六个月的销售额为480万美元,占销售额的17%。 2019财年前六个月的持续经营收入为170万美元,或每股摊薄收益0.17美元,而持续经营收入为350万美元,或去年同期每股摊薄收益0.38美元。

截至第二季度末,现金和现金等价物总额接近1400万美元,与上一季度基本持平。我们目前的订单金额为1000万美元,这是我们连续第三个季度积压超过1000万美元。

That concludes my discussion. I'll now turn the call back to Rob.

我的讨论结束了。 我现在将电话转回Rob。

Rob Dawson

Thank you, Mark. As our financial results illustrate our strategy for long-term is beginning to pay off. We generated solid sequential growth in sales in the second quarter, reflecting growth in both of our reporting segments. This increase included both organic growth in the low-double digits and inorganic growth from our recent acquisition.
We remain very focused on our key initiatives to leverage our strong customer relationships and channel partnerships to further expand our footprint in the marketplace. And to do so in a profitable manner, as we accelerate the work on our three year plan to grow to $100 million in sales. We appreciate the partnerships with our customers, distributors and suppliers, the hard work of our employees and the support of our shareholders.
With that, I'd like to open the floor to questions. Cody, we're ready to take our first question.

谢谢,马克。 由于我们的财务业绩表明我们的长期战略正在开始取得成效。 我们在第二季度的销售额实现了稳定的连续增长,反映了我们两个报告部门的增长。 这一增长包括低位数的有机增长和我们最近收购的无机增长。

我们仍然非常关注我们的关键举措,以利用我们强大的客户关系和渠道合作伙伴关系,进一步扩大我们在市场中的足迹。 并以有利可图的方式这样做,因为我们加快了我们的三年计划的工作,以增加到1亿美元的销售额。 我们感谢与客户,分销商和供应商的合作伙伴关系,员工的辛勤工作以及股东的支持。

有了这个,我想开始提问。 科迪,我们准备好回答第一个问题了。

问答环节

Thank you. [Operator Instructions] We'll take our first question from Aman Gulani with B. Riley FBR.

谢谢。 [操作员说明]我们将从Aman Gulani和B. Riley FBR首先提出问题。

Aman Gulani

Hey, guys. Hey, thanks for taking the question. First question I guess, are you seeing any supply chain or a pipeline disruption from the comp administration to tariffs on China, and maybe to a lesser extent Mexico?

大家好。 嘿,谢谢你接受了这个问题。 我想,第一个问题,你是否看到任何供应链或管道中断从管理部门到中国的关税,可能在较小程度上墨西哥?

Rob Dawson

Yes, thanks. We're certainly seeing and it's not new, but I think we're seeing it from China in particular. It started probably toward the end of last calendar year, and we've generally mitigated it. But it's not always a direct -- I think to your question, it's not always a direct impact. Sometimes it's just a slower supply chain, that we can't quite put our finger on why something slowed down, because we may be even buying from someone in the United States. But they may be getting products from somewhere overseas.
And so we see some of it, I think, we saw a little bit of hard impact from the tariffs, small dollar amount, and I think we've generally mitigated it. But it's definitely, I think, causing just the speed of execution kind of challenge in the supply chain overall. Nothing from Mexico that we've experienced so far.

对了谢谢。 我们当然看到它并不是新的,但我认为我们特别从中国看到它。 它可能在上一个日历年结束时开始,我们通常会减轻它。 但它并不总是直接的 - 我想你的问题,它并不总是直接的影响。 有时它只是一个较慢的供应链,我们无法完全理解为什么放慢速度,因为我们甚至可能从美国的某个人那里购买。 但他们可能会从海外的某个地方获得产品。

所以我们看到其中一些,我认为,我们看到了关税,小额金额的一点点硬影响,我认为我们通常已经减轻了它。 但我认为,这绝对会导致整个供应链中执行速度的挑战。 到目前为止我们没有经历过墨西哥的任何事情。

Aman Gulani

Got it, that's helpful. Okay. And then can you talk about the C Enterprises acquisition how that's performing relative to your internal expectations?

知道了,这很有帮助。 好的。 那么你能谈谈C Enterprises收购相对于你内部期望的表现吗?

Rob Dawson

Yes, sure. So they I think as some of the comments talked about, we're happy with what they're doing. Last calendar year, they did $8.7 million in sales in the six weeks that we had them in the quarter, they were at a run rate that was better than that, I think we're pleased with the way they're executing. We expected them to be a creative this year, and they have been thus far. We're pleased with that as well. And then, I think the final piece was just love to have in the team as part of RF Industries, they're responding well to being a part of it, and cross selling between the different kind of historic divisions that we've had the different product areas.
Love the relationships they have with customers and how they're executing, they've got a great operation. And we're thankful to have found them and been able to work what I think is a really good deal for everyone involved. And, they're executing really well as part of the company.

是的,当然。 所以我们认为,正如一些评论所谈到的那样,我们对他们正在做的事情感到满意。 在上一个日历年,他们在本季度的六周内销售额为870万美元,他们的运行速度比这更好,我认为我们对他们的执行方式感到满意。 我们预计他们今年会成为一个创意人,他们到目前为止。 我们也很满意。 然后,我认为最后一件事只是作为RF Industries的一部分而在团队中拥有,他们作为其中的一部分做出了很好的回应,并且在我们拥有的不同类型的历史分歧之间进行交叉销售。 不同的产品领域。

热爱他们与客户的关系以及他们如何执行,他们有一个很好的运作。 我们很感激找到他们并且能够为所有参与者工作我觉得这是一个非常好的交易。 并且,他们作为公司的一部分执行得非常好。

Aman Gulani

Thank you. Okay. And last question for me, and I know you've already talked about M&A a little bit, but if you could give me a little bit more color on the pipeline for any potential tuck-in acquisitions. And then maybe if you could touch on your specific capabilities that you might be looking for. And then the last part of that question, how might you find that to the potential future acquisitions?

谢谢。 好的。 对我来说最后一个问题,我知道你已经谈过并购了一点点,但如果你能在管道上给我一点颜色,可以进行任何潜在的收购。 然后,也许你可以触及你可能正在寻找的特定功能。 然后是问题的最后一部分,您如何才能找到潜在的未来收购?

Rob Dawson

Yeah, sure. So I think that from a pipeline perspective, I guess, the overtone to the whole thing is I like passive components. And I've said that before, but it's I think, just to make sure everyone understands what I mean by that. Radios and Ethernet switches and routers, and sort of the active components that cause a network, I think are harder for a company to pull off at our size, just from an R&D perspective. I think it's tough to get it right.
And so, I like passive components, wire, cable, power, and closures, maybe antennas, those kinds of things are concrete. I like to say it's great concrete you pour it, it stays that way 50 years, of still great concrete, I like that. It's easy to understand, it has a core infrastructure need across a lot of applications. And so when we look at a pipeline, you can assume as those kinds of companies that are in there offering wise. Like companies that are able to make money and be profitable. And then how do they go to market, ideally, they would go to market in a way that's consistent with using distribution or some portion of distribution.
And I think, sales wise $10 million to $20 million in sales. I think I've said before, if I could find more transformational deals that’s larger than that, I would absolutely be interested in it. I've not found that so far, at least one that's interested and that makes sense for us. And so that may lead into the how do we finance it kind of question.
I think if we had to take on some debt, we would absolutely do it. We're pretty -- we're in pretty good cash position at the moment sitting somewhere in the low to mid-teens. So we've got cash to be able to do deals. I think we would -- the larger the deal, the more transformational, we would likely go the debt financing route versus using that I think our stock at this point -- the paper is not quite worth what I think it should be.
And so, opinion wise, that's probably not the right vehicle for us to use. So general answer is we would likely take off some debt to pull off something if we needed it.

当然可以。所以我认为,从管道的角度来看,我猜,整个事情的泛音是我喜欢的被动组件。之前我曾说过,但我认为,只是为了确保每个人都理解我的意思。无线电和以太网交换机和路由器,以及导致网络的有源组件,我认为只要从研发的角度来看,公司就更难以实现我们的规模。我认为要做到这一点很难。

所以,我喜欢无源元件,电线,电缆,电源和封闭装置,也许是天线,这些东西都是具体的。我喜欢说它倒是很棒的混凝土,它保持了50年,仍然是伟大的混凝土,我喜欢它。它很容易理解,它在许多应用程序中都有核心基础结构需求。因此,当我们查看管道时,您可以假设那些提供明智的公司。就像那些能够赚钱并盈利的公司一样。然后,他们如何进入市场,理想情况下,他们将以与使用分销或部分分销一致的方式进入市场。

我认为,销售明智的销售额为1000万至2000万美元。我想我之前说过,如果我能找到比这更大的转型交易,我绝对会对此感兴趣。到目前为止,我还没有发现,至少有一个感兴趣并且对我们有意义。因此,这可能会导致我们如何为其提供资金。

我想如果我们不得不承担一些债务,我们绝对会这样做。我们很漂亮 - 我们目前处于相当不错的现金状态,目前坐在中低端的某个地方。所以我们有现金可以做交易。我认为我们会 - 交易规模越大,转型就越多,我们可能会采用债务融资路线而不是使用我认为我们现在的股票 - 这篇文章不值得我认为应该是这样。

因此,从意见的角度来看,这可能不是我们使用的正确工具。因此,一般的答案是,如果我们需要,我们可能会取消一些债务以取消一些东西。

Aman Gulani

Got it. Thank you very helpful. I'll pass it on.

得到它了。 谢谢你非常有帮助。 我会传递它。

Rob Dawson

Cool, thank you.

很酷,谢谢。

会议主持员

Thank you. We'll take our next question from Chris Chowsky [ph] with -- a Private Investor.

谢谢。 我们将接受Chris Chowsky [ph]的下一个问题 - 私人投资者。

身份不明的分析师

Hello, good afternoon, and congratulations on great quarter.

大家好,下午好,祝贺你好。

Rob Dawson

Thank you.

谢谢。

身份不明的分析师

So a lot of my questions were already answered. I just want to make a statement that as a shareholder appreciate your statement that you're not looking to use stock for acquisitions, I think for thinly traded stock that's very dangerous. So I appreciate that, and I think we all appreciate that. My -- let me see what questions hasn't been answered. So can you tell us whether you plan on having a sequential organic growth in the next quarter?

所以我的很多问题都已经回答了。 我只是想作一个声明,作为一个股东,感谢你的声明,你不打算用股票进行收购,我认为对于交易量很小的股票而言非常危险。 所以我很欣赏这一点,我想我们都很欣赏这一点。 我 - 让我看看哪些问题没有得到解答。 那么您能告诉我们您是否计划在下个季度实现连续的有机增长?

Rob Dawson

Yes, so sequential meaning, Q3 over Q2, is that what you are asking.

是的,顺序意义,Q3超过Q2,就是你所要求的。

身份不明的分析师

Yes.

是。

Rob Dawson

Yes. So I think that's kind of the I guess the punch line to my statement, as we wrap, before we started taking questions is that our expectation is that [indiscernible] going to give us growth over Q2. And, at this point, we're expecting that to be organic and that'll also be year-over-year growth in that scenario. So whether it's Q3 over Q3 last year or Q3 over Q2, our expectation is that we’ll grow over the quarter.

是。 因此,在我们开始提问之前,我认为这就是我的说法中的一句话,我们的期望是,我们的期望是[音频不清晰]会让我们在第二季度增长。 而且,在这一点上,我们预计这将是有机的,并且在这种情况下也将是同比增长。 因此,无论是去年第三季度的第三季度还是第二季度的第三季度,我们的预期是我们将在本季度增长。

身份不明的分析师

Yes, but in Q3, you have a full quarter of C Enterprises, so not all of your growth will be organic. So do you anticipate some organic growth in addition to that?

是的,但是在第三季度,你有四分之一的C企业,所以并非所有的增长都是有机的。 那么除了那之外你还预计会有一些有机增长吗?

Rob Dawson

Yes, I think we do. I mean, the plan all along is for us to -- on a quarterly basis layer organic growth along inorganic growth. I think one of the nuances to that is, once we buy something, and I think in this case, looking at C Enterprises, we're already starting to see sort of this cross pollination of sales of products from one historical company, through what would have been another. And so it gets a little -- the line gets a little blurrier around what's organic versus not at that point, because it’s not product that’s necessarily would have been sold that same way.
So my very simple way of looking at it is, we need to sell stuff, and we need to make stuff. And I don't really care who's selling it, which historical division or where it’s going, we need to look at the overall goals of the business in total. And I think that's generally where we've got people focused. And so while our expectation is organic growth, and then layering in the acquisition growth, it gets a little tougher for me to tell the difference, I guess, in pieces of the revenue going forward.

是的,我想我们做到了。我的意思是,一直以来的计划都是按季度在无机增长的基础上进行有机增长。我认为其中一个细微差别就是,一旦我们买了东西,我认为在这种情况下,看看C Enterprises,我们已经开始看到这种来自一家历史公司的产品销售的交叉传播,通过什么会是另一个。所以它得到了一点点 - 线条在有机物与有效物之间变得有点模糊,因为它不是必然以同样的方式出售的产品。

所以我看待它的简单方法是,我们需要卖东西,我们需要制作东西。而且我并不关心谁在销售它,哪个历史分部或者它在哪里,我们需要总体上看看业务的总体目标。而且我认为这通常是我们让人们关注的地方。因此,虽然我们的预期是有机增长,然后在收购增长中分层,但我认为,在未来的收入中,我会更难以分辨出差异。

身份不明的分析师

Okay, I appreciate that. And about the backlog, you increased revenues, again sequentially, but the backlog did not increase. That's something we should be worried about, or is the -- I'm sure you do a lot of business that doesn't get reflected in backlog because it gets booked and shipped in the same quarter. But is there anything in the backlog?

好的,我很欣赏。 关于积压,你再次按顺序增加收入,但积压没有增加。 这是我们应该担心的事情,或者是 - 我确信你做的很多业务都没有反映在积压中,因为它在同一季度被预订和发货。 但积压中有什么东西吗?

Rob Dawson

Yes, so I don't have any concerns on the backlog, I actually think it's a great number. Just to recap a little bit, if we look historically prior to 2017 the backlog was $2 million, $2.5 million, [indiscernible] we're now seeing it sitting at $10 million, $8 million, $12 million, which quarter you look at over the last six quarters or so. So I think the fact that we're disclosing it’s good we’re telling story. It's indicative of just -- there's a healthy amount of business sitting there.
But your point is a good one that we do a huge amount of bookings business, it's fast turn, where you're really getting a snapshot of the end of the specific month that happens to be the end of a quarter, we're talking about backlog. So it's not always reflective of what it might be at any given second, it just happens to be the moment we look at it and I think north of $10 million, I’m pleased with that number.

是的,所以我对积压没有任何顾虑,我认为这是一个很好的数字。 回顾一下,如果我们在2017年之前的历史看,积压是200万美元,250万美元,[音频不清晰]我们现在看到它的价格分别为1000万美元,800万美元,1200万美元,这个季度你会看到 过去六个季度左右。 因此,我认为我们正在披露它是好事我们正在讲故事。 它只是表明 - 那里有一个健康的业务量。

但是你的观点很好,我们做了大量的预订业务,快速转向,你真正得到了特定月份结束的快照,恰好是一个季度结束,我们正在谈论 关于积压。 所以它并不总能反映出它在任何特定时刻的情况,它恰好是我们看到它的那一刻,我认为在1000万美元之后,我对这个数字很满意。

身份不明的分析师

All right. And lastly, did you disclose the purchase price for C Enterprises?

行。 最后,您是否披露了C Enterprises的购买价格?

Rob Dawson

It's -- yes, it's in the queue that for this quarter. It's in there. So it's less than a $1 million. You'll see the specifics in the queue.

是的 - 是的,这是本季度的排队。 它在那里。 所以它不到一百万美元。 您将在队列中看到详细信息。

身份不明的分析师

Okay. All right, thanks. That's it for me. Good luck.

好的。 好的,谢谢。 这对我来说。 祝好运。

Rob Dawson

Sure, thank you.

好的,谢谢。

会议主持员

We will now take our next question from Aaron Martin with AIGH Investment Partners.

我们现在将向Aar Investment Partners提出Aaron Martin的下一个问题。

亚伦马丁

Hi, Rob, hi, Mark. Congratulations and I apologize for the background noise, with my kids. Most of my questions have been answered, but I want to go back to the backlog question, was the C Enterprises any of the backlog from them, and were they also primarily a book and ship company? And perhaps that's why some of the total revenue growth just shows up in more growth from the backlog?

嗨,罗布,嗨,马克。 恭喜,我和我的孩子们为背景噪音道歉。 我的大多数问题都得到了回答,但我想回到积压问题,C Enterprises是否有任何积压问题,他们还主要是书籍和船舶公司吗? 也许这就是为什么总收入增长中的一部分会从积压中显示出更多的增长?

Rob Dawson

Yes, so a small portion of the backlog would be attributable to them. But yes, most of what they do is book and ship the real fast earned stuff. So yes, you're right with your assumption.

是的,所以积压的一小部分可归因于他们。 但是,是的,他们所做的大部分工作都是预订并运送真正快速赚来的东西。 所以是的,你的假设是正确的。

亚伦马丁

Okay. I think that covers and most of the other questions were answered and we'll follow-up offline. Thank you.

好的。 我认为这些封面和大多数其他问题都已得到解答,我们会在线下跟进。 谢谢。

Rob Dawson

Okay, thanks.

好的谢谢。

Mark Turfler

Thanks, Aaron.

谢谢你,亚伦。

会议主持员

Thank you. We'll take our next question from Hall Grainger [ph], private investor.

谢谢。 我们将接受私人投资者Hall Grainger [ph]的下一个问题。

身份不明的分析师

Hi, Rob and Todd and Mark, thank you for taking my questions. I’ve got a few comments and a few questions if that's okay.

嗨,Rob,Todd和Mark,谢谢你接受我的提问。 如果可以,我会收到一些评论和一些问题。

Rob Dawson

Sure.

当然。

身份不明的分析师

I'm pleased with your quarterly results. So let me start at 40,000 feet. Rob as I've told you before, I'm a big fan of your management style. And in particular, the putting out a public metric of growing the company to $100 million in sales over three years. So doubling the company over three years. I think that's a fantastic example, for other peer group and small cap peer group. And that's something that others should emulate.

我对你的季度业绩感到满意。 所以让我从40,000英尺开始。 我之前告诉过你的Rob,我很喜欢你的管理风格。 特别是,制定了一项公共指标,将公司在三年内的销售额提高到1亿美元。 三年来公司翻了一番。 对于其他同行和小型同行群体,我认为这是一个很好的例子。 这是其他人应该效仿的东西。

Rob Dawson

I appreciate that. Thank you.

我很感激。 谢谢。

身份不明的分析师

But that's not all. I'm also a big fan of your -- of the 2019 corporate goals of cash and equity incentive plan, which was exhibit 1024 in your K. And in particular, the focus on earnings per share, which as an equity investor, I love to see companies focused on earnings per share. That's another thing which other companies should emulate and I guess some of it hasn’t -- some of the credit, I suppose goes to you, Rob and some to you Mark and some of the compensation committee I think that [indiscernible]. So -- but I think that's, that's a great, that's a great example.
If I can make one point, so it's really fantastic. I'll make the point that RH, Restoration Hardware in their 2017 proxy, they added also to not only earnings, but also stock price. But that's extremely unusual. What I don't like is when companies tie their management bonuses into things like EBITDA because the DE, of course, as depreciation, which could be from plants, which were built decades ago. And I don't really see that as being a great incentive for performance today.

但那还不是全部。我也是你的现实和股权激励计划的2019年企业目标的忠实粉丝,在你的K中展示了1024.特别是关注每股收益,作为股权投资者,我喜欢看到公司专注于每股收益。这是其他公司应该效仿的另一件事,我猜其中有些事情没有 - 有些信用,我想你,Rob和一些给你马克和一些薪酬委员会我认为[音频不清晰]。所以 - 但我认为那是一个伟大的,这是一个很好的例子。

如果我能说一点,那真是太棒了。我会指出RH,Restoration Hardware在他们的2017年代理中,他们不仅增加了收入,还增加了股票价格。但那是非常不寻常的。我不喜欢的是当公司将他们的管理奖金与EBITDA这样的东西联系起来时,因为DE当然是折旧,可能来自几十年前建造的工厂。我并不认为这是今天表现的一个很好的激励因素。

Rob Dawson

Yes, I think for us, we want to tie and this is something that I think came with me and supported by the Board and by Mark and the team that we want to make sure that -- I'm a pretty pragmatic guy. So if shareholders are expecting a profitable business, then we're going to tie our team to a profitable business. I need everybody having the same goals. And we've trickled that down, not just from shareholders, if we're going to be a public company and have people investing in it. My goal should be tied to that same expectation.
And then, within the company, everyone's goals should be tied to that, whether that's an individual sales person, who's driving growth within an account base, or otherwise. And so I think I'm a pretty strong proponent of -- if everyone's looking at compensation, generally the same way around goals. It makes for a lot less battles.

是的,我认为,对于我们来说,我们希望能够打成平手,这是我认为并且由董事会以及马克和我们想要确保的团队支持的事情 - 我是一个非常务实的人。 因此,如果股东期望有利可图的业务,那么我们将把我们的团队与盈利的业务联系起来。 我需要每个人都有相同的目标。 如果我们要成为一家上市公司并让人们投资它,我们就会把这一点涓涓细流,而不仅仅是来自股东。 我的目标应该与同样的期望联系在一起。

然后,在公司内部,每个人的目标应该与之相关,无论是个人销售人员,谁在一个帐户基础上推动增长,或其他。 所以我认为我是一个非常强烈的支持者 - 如果每个人都在关注薪酬,通常以同样的方式围绕目标。 它减少了很多战斗。

身份不明的分析师

Right. Yes. So I completely agree. I would note that what you're doing in my mind is somewhat unusual, and it's highly commendable.

对。 是。 所以我完全同意。 我会注意到你在我脑海里所做的事情有点不寻常,而且值得高度赞扬。

Rob Dawson

I appreciate that.

我很感激。

身份不明的分析师

Okay. So and along with doing the best you can. So you’re recognizing the importance of acquisitions in your growth strategy. I think it's fantastic that you've added Sherry Cefali to the board with her extensive experience in M&A and valuation. So congratulations on that.

好的。 所以,尽可能做到最好。 因此,您认识到收购在您的发展战略中的重要性。 我认为,凭借在并购和估值方面的丰富经验,您已将Sherry Cefali添加到董事会中,这太棒了。 所以祝贺你。

Rob Dawson

Thanks. Yes, we're excited about, Sherry, joining. So it's great to have her.

谢谢。 是的,我们很高兴,雪莉,加入。 拥有她真是太棒了。

身份不明的分析师

So regarding acquisitions. So in your Q that just came out moments ago. You identified the cost as $600,000 plus liabilities. So you say less than a million. The revenues I forget when it was, was it LTM or before you bought it over $8 million. So that seems like a very appealing acquisition. And rather than asking you why you guys wanted to do that acquisition, can we flip that around and can I ask -- it seems to me that C Enterprises wanted to join you. So what did they see do you think in joining you that was so appealing?

关于收购。 所以你的Q刚刚问世。 您确定成本为600,000美元加上负债。 所以你说不到一百万。 我忘记的收入是LTM还是在你购买800多万美元之前。 所以这似乎是一个非常有吸引力的收购。 而不是问你们为什么要做这个收购,我们可以翻转一下,我可以问 - 在我看来,C Enterprises想加入你们。 那么他们认为加入你们时他们看到了什么呢?

Rob Dawson

Yes, so I think, the biggest thing to summarize, I think for them and I can't speak on their behalf other than through our conversations, there's recognition that it's hard being a small company. And this is a tough space. And so some economies of scale and some leverage overall across a bigger business with more customers by a bigger sales structure and bigger pockets to back some things. I think that helps in almost any case.
And so what we saw was combining some operations would give them the benefit of some growth opportunities and give a lot of really good people and opportunity to do more. And, their ownership team was a great group, enjoyed working with them through the process. And I think their recognition, very similar to the way I look at things, their recognition of what's best for people, and how we could work together to have a good outcome really came through in the conversations.
And so, I think we drove a good outcome for them and for us, I feel great about it. And I appreciate what they've what they brought to the table so far and where we're looking forward. So I really think it was just more about a larger organization giving an opportunity there.

是的,所以我认为,最重要的是要总结,我认为对他们而言,除了通过我们的谈话之外,我不能代表他们发言,因此认识到很难成为一家小公司。这是一个艰难的空间。因此,通过更大的销售结构和更大的口袋支持一些事情,一些规模经济和一些更大的业务与更多客户的整体利用。我认为几乎在任何情况下都有帮助。

所以我们看到的是,将一些运营结合起来会给他们带来一些增长机会的好处,并给予很多真正优秀的人才和更多的机会。而且,他们的所有权团队是一个伟大的团队,喜欢在整个过程中与他们合作。而且我认为他们的认可,与我看待事物的方式非常相似,他们对最适合人的方式的认可,以及我们如何能够共同努力以获得良好的结果,这些都在谈话中得到了体现。

所以,我认为我们为他们和我们带来了良好的结果,我感觉很棒。我很欣赏他们到目前为止所带来的东西以及我们期待的目标。所以我真的认为这只是一个更大的组织在那里提供机会。

身份不明的分析师

Right. Okay. So Rob, you said it would be accretive or maybe Mark said it was a accretive, accretive to earnings per share? How are you measuring accretive?

对。 好的。 所以罗布,你说它会增加,或者马克说这是一个增加,增加每股收益? 你是如何衡量增长的?

Rob Dawson

Yes, just in the standard way, we're looking for profitability coming out of that business. So we're expecting this fiscal year to see a portion of our profitability coming from the C Enterprises operation.

是的,只是以标准的方式,我们正在寻找从该业务中获利的。 因此,我们预计本财政年度的部分盈利能力来自C Enterprises业务。

身份不明的分析师

Okay, great. Can you quantify, so you had this the big -- you had a series of big orders from a customer in fiscal 2018, which drove record sales for you guys. And now Rob, you mentioned, that's continuing so far this fiscal year. Can you quantify how much of this year sales come from that same customer? Or, or maybe more, particularly from the same project?

好,太棒了。 你可以量化,所以你有这个大 - 你在2018财年得到了一系列来自客户的大订单,这为你们带来了创纪录的销售额。 现在罗布,你提到过,这个财政年度到目前为止还在继续。 您能否量化一年中销售额来自同一客户的数量? 或者,或者更多,特别是来自同一个项目?

Rob Dawson

Yes, so we're not breaking it out that way from a disclosure perspective, but I think that the way we look at it or the easier way to talk about that versus specific dollars from that customer, it relates more that we've seen growth in the rest of our business at a much higher rate. So our distribution business is growing significantly, as measured by our RF coax and connector business, which was up 20% percent this quarter, and even larger last quarter.
So we're seeing that the percentage of the business, it's still a meaningful customer, and we love them, and we want to keep that going forever. But we're seeing the rest of our business grow at a larger clip to help keep the business going. And our concentration is coming down as a percentage over what you would have seen in any of our Qs last year. So that's a -- I think that's a healthy statement on you we're focused on making sure we're diversifying as much as we can.
And I think one of the things I said in my prepared comments was recognizing that a big opportunity gives you a chance to bridge to whatever's next for the company. And so we're accelerating around that concept that yes that was some big numbers, those numbers are not the exact same quantity as they were last year and this year. Okay, great, let's take advantage of a really great new relationship and some recurring revenue coming from that and some profitability related to it, to really perform at a much higher level and springboard to what's next, which I think we're doing pretty well.

是的,所以我们不会从披露角度那样打破它,但我认为我们看待它的方式或更简单的方式来讨论与客户的特定美元相比,它与我们看到的更多相关我们其他业务的增长速度更快。因此,根据我们的RF同轴电缆和连接器业务,我们的分销业务正在显着增长,本季度增长了20%,上一季度甚至更大。

因此,我们看到业务的百分比,它仍然是一个有意义的客户,我们喜欢它们,我们希望永远保持这种状态。但我们看到我们业务的其他部分增长更大,以帮助保持业务发展。我们的注意力比去年你们在任何一个Q中看到的都要低。所以这是一个 - 我认为这是一个健康的声明,我们专注于确保我们尽可能多样化。

而且我认为我在准备好的评论中所说的其中一件事就是认识到一个重要的机会让你有机会与公司的下一个交流。因此,我们正在围绕这个概念加速,这是一些大数字,这些数字与去年和今年的数量并不完全相同。好吧,太好了,让我们利用一个非常好的新关系和一些经常性的收入以及与之相关的一些盈利能力,真正在更高的水平上发挥作用并跳到下一个,我认为我们做得很好。

身份不明的分析师

Right, great. Okay. Rob, you mentioned that a change in the sales organization, as I understood what you said. How is the new sales model different than the previous sales model before you arrived?

对,很好。 好的。 Rob,你提到了销售组织的变化,因为我理解你所说的。 在您抵达之前,新的销售模式与之前的销售模式有何不同?

Rob Dawson

Yes, so I think there is probably a few things generally in that, one is taking advantage of the one company approach and making sure that our complete offer is available to any customer and they're clear on, who we are in total, what are the different things we can do copper, fiber, coax, multi-conductor, large, small sort of there's a broader offering that we have that I want to make sure we're blanketing existing and new customers with that offer in total. So they hear it as one company and one overall opportunity to work with us.
The second piece of it is, we've really doubled down on distribution as a key driver for our growth. So we've always used distribution in a portion of our business. We will always have a portion of our business that's more OEM centric and direct because it's more elaborate, it would be harder for a distributor to put that on the shelf and have a run rate kind of business, so we're always going to have a mix.
But with that said, we've really, in the business for us that is distribution friendly, and the RF coax and connector businesses is the most obvious. We're trying to run every penny of that through distribution, which is different than what we would have done in the past and C Enterprises as much the same way, the majority of their business is distribution centric with a smaller portion being more OEM, elaborate kinds of solutions.
So we want to pull that together, make sure we're handling those distributors the right way. And we're set up in a model that structurally allows us to do business the way they want to do business, joint marketing plans, leveraging the size and scope of who they are. So they're a force multiplier, which I have a background with some distribution in it. And I love distribution. I think for the right kinds of products it's a great place for us to be and we're doing a good job with it and we've got a chance with a little bit of restructuring to just make sure our resources are focused on handling and managing distribution and as strongly as we can.

是的,所以我认为通常可能有一些事情,一个是利用一个公司的方法,并确保我们的完整报价可供任何客户使用,他们是明确的,我们是谁,什么是不是我们可以做的不同的事情铜,纤维,同轴电缆,多导体,大型,小型的我们有更广泛的产品,我想确保我们总共覆盖现有和新客户。因此,他们将其视为一家公司,并与我们合作的整体机会。

第二部分是,我们确实将分销成倍增长作为我们增长的关键驱动因素。所以我们总是在我们业务的一部分中使用分销。我们将始终将我们业务的一部分更加以OEM为中心和直接,因为它更加精细,分销商将其放在货架上并且具有运行速度类型的业务将更加困难,因此我们总是会有混合物。

但话说回来,我们真的,在我们的业务中,对于分销友好,RF同轴电缆和连接器业务是最明显的。我们试图通过分销运行每一分钱,这与我们过去的做法不同,而C Enterprises也是如此,他们的大多数业务是以分销为中心,较小的部分是更多的OEM,精心设计的各种解决方案。

因此,我们希望将它们结合在一起,确保我们以正确的方式处理这些经销商。我们建立了一个模型,在结构上允许我们以他们想要的方式开展业务,联合营销计划,利用他们的规模和范围。所以他们是一个力量倍增器,我有一个背景,其中有一些分布。而且我喜欢发行。我认为对于合适的产品来说,这对我们来说是个好地方,我们做得很好,我们有机会进行一些重组,以确保我们的资源专注于处理和尽可能强有力地管理分销。

身份不明的分析师

Right. Okay, great. One my final question, you mentioned 5G, I guess, kicking in at some point in the future, if I understood that correctly, what are you thinking about when that might be?

对。 好,太棒了。 我的最后一个问题,你提到5G,我想,在未来的某个时刻,如果我理解正确的话,那你在想什么呢?

Rob Dawson

Yes, so we're seeing little kind of drifts and drabs of it now and there's obviously deployments happening. So I read the news, like everyone and we're all going okay, so it's happening. It is and each carrier is doing a nice job of turning up one or more cities with different technologies, whether that's more fixed or mobile, which is now coming online. I think the real spend though, I expect to see it next calendar year early.
My opinion and again everyone's kind of got a different exact opinion. There's some of it happening now, we know we're selling some products into the densification effort around 5G, we know we've put some hybrid fiber cables out in the market around more traditional tower based 5G, but I think the consistent spend, and the increase around it, small cell is a great example.
There's still a lot of questions that each carrier or neutral host company has around the final design for small cells, how that’s going to be deployed, which technology is in there. I think it's great that I see it all as opportunity, but I expect that we're in the infancy of the spend and I think we'll see it ramp over the next 12-24 months in a pretty meaningful way. I would expect 5G to have a pretty long tail to it, from a spend perspective. We're going to be deploying millions of small cells across the country that’s not a fast thing.

是的,所以我们现在看到它几乎没有漂移和单调,并且显然正在进行部署。所以我和所有人一样阅读新闻,我们一切都好,所以它正在发生。它是,并且每个运营商都在努力建立一个或多个具有不同技术的城市,无论是更加固定还是移动,现在正在上线。我认为真正的花钱,我希望在下一个日历年提前看到它。

我的意见和每个人都有不同的确切意见。现在有一些事情正在发生,我们知道我们正在向5G左右的密集化工作中销售一些产品,我们知道我们已经在市场上推出了一些混合光纤电缆,围绕更传统的塔式5G,但我认为一致的花费,而在它周围的增加,小细胞就是一个很好的例子。

对于小型电池的最终设计,每个运营商或中性主机公司还有很多问题,如何部署,哪种技术在那里。我认为这很好,我认为这一切都是机会,但我希望我们处于支出的初期阶段,我认为我们会看到它在未来12-24个月内以一种非常有意义的方式发展。从花费的角度来看,我希望5G有一个相当长的尾巴。我们将在全国各地部署数百万个小型电池,这不是一件快事。

身份不明的分析师

Right. So is it going to be -- would you expect it to be kind of delayed and then hit in next calendar year? And or you see it gradually ramping up during -- between now and then?

对。 它会是 - 你会期望它有点延迟然后在下一个日历年被击中吗? 或者你看到它从现在到现在之间逐渐增加?

Rob Dawson

Yes, I think it's interesting. From our perspective, we're small in the space, we're getting a very small percentage of that total spend, and our products -- depending on the solution, our products may show up early in the cycle or as kind of a last touch. Oh, yes, we need these cables as well everybody handles that deployment differently.
But I think for us, we expect that it's going to continue kind of halting at the moment it’s a start and stop kind of thing where we see some and then it slows down and we see some and it slows down. I think it'll get more consistent for us going into next year. I'm not exactly clear at this point on do we see a massive volume increase. I think the opportunity for that’s there positioning today, the hardest part for us is to recognize when we sell a cable into a distributed antenna system, is it public safety, is it 4G, is it 5G, is it something else, we can’t always tell, some of those are pretty consistent products across them.
So, I expect the larger spend around radios and the mega deployments coming in next year I think for us, we'll see a consistent opportunity for that spend to grow. I just don't think we see it the same way as someone who makes one of the base station radios or there about.

是的,我认为这很有意思。从我们的角度来看,我们在这个领域的规模很小,我们在总支出中占很小比例,而我们的产品 - 根据解决方案,我们的产品可能会在周期的早期出现或者作为最后一种触摸。哦,是的,我们也需要这些电缆,每个人都以不同的方式处理这种部署。

但我认为,对于我们来说,我们预计它会在一开始就停止,并且停止我们看到一些然后它减速的东西,我们会看到一些并且它会减慢。我认为明年我们会更加一致。我现在还不清楚我们是否看到大量增加。我认为今天有机会定位,对我们来说最困难的部分是认识到我们何时将电缆销售到分布式天线系统,是公共安全,是4G,是5G还是别的,我们可以'总是说,其中一些是非常一致的产品。

因此,我预计明年将出现更多关于无线电和大型部署的支出,我认为对于我们来说,我们将看到这种支出增长的一致机会。我不认为我们看到的方式与制作其中一个基站无线电或其他人的方式相同。

身份不明的分析师

Okay. Where these orders be coming from the same customer, was a big -- putting the big orders last year?

好的。 如果这些订单来自同一个客户,那么去年的大订单是不是很大?

Rob Dawson

Well, I think we expect that business to continue, we've done -- our sales team has done a great job of taking care of that relationship, our production team has done a great job of executing to put out some pretty significant volume on those products. So we expect that to continue, but I think we also need to -- when we look at our low PIM Cable Assembly business, for example, which is traditional coaxial cable, we're selling a ton of that into that solutions than into small cell solutions that that to an earlier point, it's not always easy to tell, is that true 5G or is that just identification or both.
So I think we're going to see growth from our core business and our core products. I think the spend in the Tier-1 space from the one large relationship we talked about. I expect that to be consistent spend, but not the -- what we know today we're not expecting the big kind of lump that we saw of orders in a short period of time last year.

好吧,我认为我们希望业务继续下去,我们已经完成了 - 我们的销售团队在处理这种关系方面做得非常出色,我们的生产团队在执行方面做得非常出色,以便在 那些产品。 所以我们希望这种情况继续下去,但我认为我们还需要 - 当我们看到我们的低PIM电缆组件业务,例如传统的同轴电缆时,我们将大量的产品销售到该解决方案而不是小型 细胞解决方案,对于更早的一点,它并不总是很容易分辨,是真正的5G或只是识别或两者兼而有之。

所以我认为我们将看到核心业务和核心产品的增长。 我认为在我们谈到的一个大型关系中花费在一级空间。 我希望这是一致的支出,但不是 - 我们今天所知道的,我们并不期待去年在短时间内看到订单的大块头。

身份不明的分析师

Okay, okay. And then once 5G hits, how long do you expect it to continue?

好吧好吧。 然后一旦5G命中,您希望它能持续多久?

Rob Dawson

Yes, I mean, I have a very long expectation for what we're calling 5G, whether that's turning on macro sites, kind of traditional macro tower sites and rooftop sites in more urban areas, or densification at street level, small cell DAS in buildings and other venues and then you got to hit the rural markets. So it's going to take a while, I mean 4G spend still happening right now.
So I don't look necessarily at the generational aspect of -- is it going to be a short window or a long window. I think when we have new technology and it starts to have uptake, it's going to take a while for that to deploy. So I'm expecting 10 years, I don't know a long period of time, I don't think it's going to be a short window expect a long tail around that build.

是的,我的意思是,我对我们称之为5G的东西有很长的期望,无论是开启宏观网站,还是更多城市地区的传统宏塔站点和屋顶站点,还是街道层面的密集化,小区DAS in 建筑物和其他场地,然后你必须打到农村市场。 所以这需要一段时间,我的意思是4G花费现在还在发生。

所以我看起来并不一定是世代相传的 - 它是一个短窗还是一个长窗。 我认为,当我们拥有新技术并且它开始受到采用时,部署它需要一段时间。 所以我期待10年,我不知道很长一段时间,我不认为它会成为一个短窗口,期望围绕该构建的长尾巴。

身份不明的分析师

Okay. Great. Thank you very much.

好的。 大。 非常感谢你。

Rob Dawson

Thanks. Appreciate it.

谢谢。 欣赏它。

会议主持员

[Operator Instructions] It appears, there are no further questions in the queue at this time. I just comes back over to management for any additional closing remarks.

[操作员说明]看来,此时队列中没有其他问题。 我只是回到管理层处获取任何其他结束语。

Rob Dawson

Great. Thanks, Cody. And thanks everyone for your interest in support of RF Industries. We look forward to reporting our third quarter of fiscal 2019 results in September. Thanks for joining our call and have a great day.

非常好。 谢谢,科迪。 感谢大家对RF Industries的支持。 我们期待在9月份报告2019财年第三季度业绩。 感谢您加入我们的电话,祝您度过愉快的一天。

会议主持员

Thank you. This concludes today's conference. Thank you all for your participation. You may now disconnect.

谢谢。 今天的会议结束了。 谢谢大家的参与。 您现在可以断开连接。

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